Foreclosure Question

[just4aki]

I noticed a lot of people who FC, also file BK (either chapter). Is there a reason for that? What if you are unable to file BK? What happens if you don't file a BK?

 

Thanks.

J

[Help-Down-n-out]

Hi J,

 

I am new but my reason and I am sure so many others do file BK after FC is because the mortgage holder/bank can get a judgement on you if the house is sold for less than owed. I forgot what the judgement is called. Also many of people who are FC on have reasons that lead to money probs (illness, job loss & ect) these probs normally cause large debt which is why many people do go into FC. I did chapter 7 as I was not able to save my home from Fc. Many people do 13 to save the home by repaying what is owed, if they can afford the trustee payment and can show proof they can afford the payments along with other things.

 

So many people say it is all adj loans that are being FC but mine was a 30 year fix and so are many others.

 

Hope I was of some help

[jw1980]

The BK filing also stays the foreclosure, as foreclosing becomes a prohibited collection activity without the trustee's approval.

 

I have seen quite a few people wait to file until literally days before their home is to be sold, with the main motive being the additional time granted.

 

BK is not only about reducing debts to reasonable levels. The stay provisions give a debtor time to get his or her affairs in order, and plan for the future.

[just4aki]

Thanks for the replies. I'd be unable to file for BK, however, we do live in CA which I believe means we can walk away and they can't come after us. I'll have to do more research on the FC procedures. Unfortunately, DH and I can either afford the house or our debt, but not both. One reason why we wouldn't want to file BK, but there are others.

 

Good luck to those that have or are in FC.